Sorry, I missed the bit that said I was not allowed to ask for customer support until some other date?
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The funding requirement would be less than £5m as they can use other peoples deposits to offset those overdrafts to a certain extent, they would also hope to get most of £5m back
the counter argument is they could tempt all the creditworthy (say 2 million) users into using an overdraft the don’t need, and cleanup on the interest charges in 3 months time. Its a route to profitability, but think that would go against what Monzo stand for
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Fair comment. Thanks. 
But what would you like customer support with? That’s the bit I’m confused about? What are you expecting from them, given that you are in credit?
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I think I see my confusion. You want to check that the terms of your OD have changed to comply with the FCA.
I would have done it back to front than you, i.e. make use of my overdraft and then, should interest be charged in contravention of the FCA rules, conduct customer support to rectify the problem.
Each to their own 
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Pretty sure he made that clear a couple of posts further up 
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Really appreciate the effort that you’ve gone to.
Again, shame of the outcome but at least we sort of know now!
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but that’s not what the FCA guidance says, maybe people need to read it ?
- Primary personal accounts is what the guidance is for, if you dont get your salary paid in to Monzo and use another bank for your salary , that s the bank that should be offering the interest free overdraft. Monzo of course will help out if they can and have said as much many times
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The article I had read made it less obvious:
if you scroll down to overdrafts in red text at the bottom section 6 ?
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Yes, that brings it to your other article. I does actually mention it in the body text a bit less obviously
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the problem is it does create confusion , that people that use inserts banks name as a spending card should be entitled to interest free overdrafts if they have an overdraft with inserts bank name
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some are refusing to open current accounts for new customers - first direct I think
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me neither they should look after their loyal customers
I totally agree with this as well - Ive highlighted your “and” , Monzo have said they would help wherever possible
" Monzo has to offer a £500 overdraft at 0% interest to people who have Monzo as their main account, and are negatively impacted by Coronavirus."
I had a play around on the lloyds website and was offered an interest free overdraft , and then they explained to me that on …I think june 1st ( ? ) that if I still had the overdraft it would be this much , they obviously know all this is going to be over on June 1st I will be fully employed by then etc etc etc …hmmmmm I might just be in my overdraft big time by then with no way of getting out of it
And Im not saying some that are struggling should be given no help , but by looking on the forum alone - and we are the financially engaged to a degree - this is being talked about as “free overdrafts” like its some gift for ever …its not
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They don’t have to give the overdraft to all, if the customer doesn’t have an arranged overdraft they don’t need to grant one(interest free or otherwise)
“ Where a firm provides an arranged overdraft to a customer, and the customer has difficulties with their finances, or reasonably expects to have difficulties with their finances, due to the impacts of coronavirus, the firm should, at the customer’s request, assist the customer in the following way:”
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Errr isn’t that how they already offer overdrafts? Now they won’t make interest on some of them as well as offering more of them.
1 wouldn’t be unreasonable given the guidance was only finalised 3 days ago and there have been no regular working days since then.
2 isn’t an option. They’ll have to help customers entitled to help. But doesn’t have to be all customers.
Generous … or perhaps just decided it’s operationally not worth the effort for them to deal with customers on a case-by-case basis.
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Why is this hitting banks so hard? I would’ve expected most of us to continue getting paid or receiving an income of some kind, and still to have our direct debits and spending going out.
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I don’t know about legacy banks, but for Monzo, most of its revenue comes from interchange - a small fee that’s charged to the merchant whenever you use your card. Card purchases abroad have a higher rate of interchange.
I don’t know about you, but other than direct debits, standing orders and CPAs for mortgage, utilities etc, my card transactions have gone from several a day to a couple per week. That, plus the delay of their paid for accounts, must be hitting Monzo hard.
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That’s more to do with ensuring that they keep their staff free to deal with existing customers. Like any other organisation, FD will have a large % of staff of sick or isolating.
Besides, FD give a £250 overdraft interest free as standard anyway and yes, they have increased this to £500 in line with the FCA rules.
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